Will we ever see ETH overtake BTC?

GM 👨‍👩‍👧‍👦

Seedphrase Daily 👋 We're the newsletter that dissects crypto like a 9th-grade science project. We kept it short and sweet for you today.

Today’s Agenda 📓:

• 🥊 Will we ever see ETH overtake BTC?

• 🪤 Are big investors tricking you into a bear trap?

• 🎤 Biggie Smalls’ Estate Goes Crypto With Music License NFTs

🥊 Will we ever see ETH overtake BTC?

Ever since cryptocurrencies' birth, Bitcoin has maintained its dominance across the entire market. But, with countless issues Bitcoin has, will that be the case forever?

Enter: the "Wen Flippening?" movement, a group of people that think Ethereum will eventually surpass Bitcoin.

Here's why 👇

• BTC dominance has fallen to around 40% of the market, down from 70% in January last year.

• ETH has surged the last few weeks as optimism grows for their transition from Proof of Work to Proof of Stake. Solving Bitcoin's #1 problem of energy cost.

The flippening may just be speculation at this point, but Quantum Economics Founder and CEO Mati Greenspan wrote in a note:

"Even though there's no guarantee this will ever happen, just looking at the numbers, it does seem like this event is getting closer by the day."

He also added his thoughts on the merge 🧠:

"The Merge is over-hyped from an ETH price perspective," he said. "It's an incredibly important technological change for Ethereum, but 99.99% of users will experience no difference whatsoever until months or years later. Meanwhile, the impacts of reducing and reallocating issuance will take a while to filter down to ETH prices."

Ethereum Flips Bitcoin in Options for the First Time! 📈

Deribit is the world's largest crypto options exchange, accounting for more than 90% of the globe's total trading volume and open interest.

If you're unfamiliar, open options trades or open interest refers to the number of options contracts (call and put) traded but not squared off with an offsetting position.

The Ether options contracts have taken over BTC in the options market on the Derbit exchange, totaling $5.7B. That's 32% higher than the $4.3B open bitcoin options trades.

ETH also topped BTC as the most traded crypto on Coinbase. ETH trading volume accounted for 33.4% of the total turnover in the week ending July 29, while BTC trading volume accounted for 32%, with SOL in distant third place.

Is it possible? 🤔

Bodhi Pinker, a crypto analyst, said, "We have a favourable view of Ethereum," adding that following the Merge, it will become a deflationary asset. "So that changing dynamic bodes theoretically well for Ethereum's price relative to Bitcoin, especially in an environment of tightening."

What are your thoughts?⤵️

🪤 Are big investors tricking you into a bear trap?

Thoughts of a Billionaire 👀

Famous investor Jim Rogers who co-founded Quantum Fund with billionaire investor George Soros warned that many stocks will fall 90%:

"More bear markets are coming … The next one is going to be the worst in my lifetime."

"The debt, oh my God, look out the window. The debt has skyrocketed everywhere, so the next bear market has to be horrible," he says.

"How can it not be a horrible bear market … I mean, the U.S. has increased its debt by several times since 2009. Japan, oh my God, they can't even count the debt in Japan. In many countries in the world, the debt just goes higher and higher and higher … 2008 was because of too much debt. It's much worse now."

Rogers also explains that the U.S. dollar will lose its dominance and that the "Russia-Ukraine war accelerated it."

Market Sentiment: Devil's Advocate 💼

The general market sentiment is bearish, which makes you think... If EVERYONE thinks the market is moving a certain way, does that mean the 1% are looking for bullish plays? With all the announcements of investing firms saying markets are bearish, it's appropriate that we question them if they are leading us the wrong way.

The plan could be to get everyone selling to miss out on the short-term pump so they can get a better price average. A popular strategy whales use to maximize the gains they receive from retail traders called a bear trap.

We discussed how that affects the average investor and how to avoid it here.

Be safe and plan out your trades!

Aaand another big name artist is stepping into the crypto game, posthumously.

🎤 Biggie Smalls’ Estate Goes Crypto With Music License NFTs

One of the founders of Hip Hop is still innovating from the gr. The Biggie Smalls Estate partnered with OneOf Marketplace to release an exclusive NFT collection.

These are the holder's benefits: 👇

• Voting rights over distribution of an unlicensed Notorious B.I.G. freestyle.

• Artists can sample the freestyle in their own music "with the approval and oversight of the collective (and estate)."

• Access to The Brooks Metaverse, another venture from the estate that will soon be released as a "culture, music, and entertainment metaverse."

If you're a hip-hop fan or betting on the music industry converting to the blockchain, this could be a fantastic opportunity. NFA.

Link to Purchase

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See you tomorrow! ✌️

Disclaimer: None of this is financial advice. This newsletter is strictly educational and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research!